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iShares 0–3 Month Treasury Bond ETF (SGOV) is an exchange-traded fund that seeks to track the performance of an index composed of U.S. Treasury securities with maturities ranging from 0 to 3 months. The ETF is managed by BlackRock (iShares) and trades under the ticker SGOV on NYSE Arca.
Classified as a U.S. government fixed-income ETF, SGOV aims to reflect, before fees and expenses, the performance of the securities that make up its benchmark index. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the index.
The benchmark index tracked by SGOV is composed exclusively of ultra-short-term U.S. Treasury Bills, weighted by market value, with frequent updates to include new issuances and remove securities approaching maturity.
Composition and exposure profile
SGOV provides exposure to the U.S. government bond market, a segment characterized by low credit risk and high liquidity. The fund’s portfolio is concentrated in the U.S. Treasury Bills with maturities between 0 and 3 months.
This composition results in low volatility, high liquidity, and limited sensitivity to interest rate movements, reflecting the aggregate behavior of short-term U.S. government securities.
Structure and costs
Shares of SGOV are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund follows the standard structure of passively managed fixed-income ETFs, with a low expense ratio and no performance fee. SGOV has a single share class and trades exclusively under the ticker SGOV.
History and evolution of the ETF
The iShares 0–3 Month Treasury Bond ETF was launched in 2020, amid increased demand for liquidity-focused investment vehicles, particularly during periods of heightened market uncertainty. Since its inception, SGOV has been widely used by institutional and individual investors as a short-term U.S. dollar allocation tool, maintaining a consistent focus on replicating its benchmark index.
Between 2020 and 2024, the ETF reflected conditions in the U.S. fixed-income market during a period marked by monetary policy cycles, changes in short-term interest rates, and increased demand for low-risk, high-liquidity instruments.
